A guide to respond and emerge stronger from the COVID-19 crisis
The power and utilities sector, which fuels almost every other industry, is not accustomed to an accelerated pace of change. But decarbonisation, decentralisation, and digitisation are bringing new challenges — and speeding up evolution. Amid rising market uncertainty and increasing attention to climate change, the world’s largest utilities are shifting investments from large-scale power supply into the network. New value pools are forming in areas as diverse as energy management, electric car charging, and home automation. And instead of simply charging a fixed price to deliver electricity, utilities are rolling out pricing models and services more closely associated with consumer goods and industrial companies.
At Strategy&, we understand how nontraditional competitors approach the market. We work with traditional utilities, merchants, and marketers, as well as to investment firms, vendors and suppliers, and governments to prepare for change with near-term readiness and long-term growth. This is strategy, made real.
A leading Italian utility needed to revise its Go-to-Market model, to support geographical expansion and enhance customer retention. Strategy& identified new relevant customer segmentation drivers and priority targets, and designed the optimal channel mix by segment, as well as a revised commercial approach in the sale and after-sale stages, and new multi-channel interactions across the customer journey. Finally, Strategy& defined a set of practical initiatives and prioritised them in an implementation plan - helping the client transition to the new go-to-market model.
A leading Italian energy operator wanted to address recyclability challenges related to wind generator blades waste management. Strategy& defined a circular value chain to manage end-of-life blades through a local but scalable industrial solution, enabling an increase in the average recyclability rate and positively contributing to industry growth and employment in an economically depressed area. Further, Strategy& supported the client throughout the realisation of an innovative and collaborative business model, engaging multiple partners along the value chain as well as defining key roles and cooperation principles for a successful implementation.
A European gas TSO (Transmission System Operator) needed to define its Energy Transition strategy to meet the net zero targets set by the EU for 2050. Strategy& conducted a detailed study on long term energy supply and demand scenarios, assessing the role of decarbonised gases (including biomethane, synthetic methane, blue and green hydrogen) within the future energy mix. Strategy& evaluated the impacts of each scenario on the existing and future gas infrastructures, and identified the most efficient decarbonised gases solution for both the Client and the Country to enable the achievement of the decarbonisation targets. Finally, Strategy& designed the Client's 2050 strategic roadmap, including a set of actionable initiatives, and identified the necessary changes to the market framework to be proposed to the Country energy regulator.